KARACHI: State Bank of Pakistan on Wednesday released data pertaining to profit and dividend repatriation on foreign direct investment (FDI) which rose 28.9 percent to $935.9 million during July-November 2017.
During July-November 2017, Pakistan received $1.146 billion net FDI, the central bank data revealed. Bulk of profit outflows were from power, financial, communications, oil and gas exploration sectors, reported an English daily.
Financial entities repatriated $152.6 million in profits abroad during July-November of financial year 2017-18 against $145.7 million a year ago.
According to analysts, foreign entities showed unwillingness to invest more in banking sector notwithstanding the increased repatriation of profits. During the period under review, the banking sector received $75.3 million in FDI.
An analyst said atmosphere of low interest rates and big bond maturities had minimized moneymaking chances for banking sector, but the profit repatriation remained strong.
Banking constitutes as the second most precious sector on the stock exchange but has highest weight in benchmark KSE-100 shares index because of float criteria. The banking sector saw its value dip by 23 percent in 2017 against 33 percent rise in 2016, according to a brokerage report.
Central bank data disclosed $124.7 million was repatriated via energy firms in first five months of FY 2017-18 against $77.9 million in same period last year (SPLY).
Oil and gas exploration sector outflows stood at $107.9 million compared to $56.9 million in SPLY. And communication businesses repatriations stood at $121.5 million during July-November of FY 2017-18 against $12.7 million in SPLY.
